Critical Review: MDxHealth (NASDAQ:MDXH) and DermTech (NASDAQ:DMTK)

DermTech (NASDAQ:DMTKGet Rating) and MDxHealth (NASDAQ:MDXHGet Rating) are both small-cap medical companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Earnings and Valuation

This table compares DermTech and MDxHealth’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DermTech $11.84 million 12.09 -$78.33 million ($3.16) -1.51
MDxHealth $22.24 million 4.88 N/A N/A N/A

MDxHealth has higher revenue and earnings than DermTech.

Profitability

This table compares DermTech and MDxHealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DermTech -716.51% -37.83% -34.86%
MDxHealth N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for DermTech and MDxHealth, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DermTech 0 1 2 0 2.67
MDxHealth 0 0 3 0 3.00

DermTech presently has a consensus target price of $27.20, indicating a potential upside of 467.85%. MDxHealth has a consensus target price of $15.33, indicating a potential upside of 120.62%. Given DermTech’s higher possible upside, research analysts plainly believe DermTech is more favorable than MDxHealth.

Insider & Institutional Ownership

75.1% of DermTech shares are owned by institutional investors. Comparatively, 18.2% of MDxHealth shares are owned by institutional investors. 3.6% of DermTech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

MDxHealth beats DermTech on 6 of the 10 factors compared between the two stocks.

About DermTech (Get Rating)

DermTech, Inc., a molecular diagnostic company, develops and markets novel non-invasive genomics tests to diagnosis skin cancer, inflammatory diseases, and aging-related conditions in the United States. It offers DermTech Melanoma Test (DMT), a gene expression test that that enhances early detection of genomic atypia and helps rule out melanoma and the need for a surgical biopsy of atypical pigmented lesions. The company also provides adhesive skin sample collection kits, as well as gene expression assays for the Th1, Th2, IFN-gamma, and Th17 inflammatory pathways. In addition, it is developing UV damage DNA risk assessment products, as well as non-melanoma skin cancer diagnostic and cutaneous T-cell lymphoma rule out test products, as well as offering health-related and information services through electronic information and telecommunication technologies. The company sells its products primarily to pathology and oncology practitioners. DermTech, Inc. is headquartered in La Jolla, California.

About MDxHealth (Get Rating)

MDxHealth SA, a commercial-stage precision diagnostics company, provides urologic solutions in the United States, the Netherlands, Belgium, Spain, Poland, Italy, rest of European Union, and internationally. Its novel prostate cancer genomic testing solutions are SelectMDx, a non-invasive urine test; and ConfirmMDx, an epigenetic test, which provide physicians with a clinical pathway to identify clinically prostate cancer while minimizing the use of invasive procedures that are prone to complications. The company was formerly known as OncoMethylome Sciences SA and changed its name to MDxHealth SA in October 2010. MDxHealth SA was incorporated in 2003 and is headquartered in Herstal, Belgium.

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